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Does anyone have suggestions on how an incentive program for professional service consultants that work on fixed price contracts?

Normally we would focus on utilization to bonus consultants but with fixed price contracts we want them to be motivated to finish under budget as well.


Kate West
Title: President
Company: The C Corps, LLC
(President, The C Corps, LLC) |

With any incentive program, you need to consider how to balance the performance so that your professional service consultants don't focus their behavior in one area, like utilization.

I recommend considering a three-fold approach as it's still easy-enough to manage while still providing a good balance. How about in addition to utilization, you also measure customer satisfaction and profitability on the project/job? Adding the other two measures ensures your consultants don't sacrifice customer service for budgetary concerns or sacrifice budget constraints for utilization.

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